Chicago-based investment research provider Morningstar has moved into the real-time market data business with the acquisition of Tenfore Systems for around £13.5 million in cash.
UK-based Tenfore, which provides real-time market data and financial data workstations, is being bought from a private investment group. The price is subject to post-closing adjustments.
The business will be rebranded under Morningstar and report to Catherine Odelbo, who heads up the buyer's equity research group.
Morningstar says it hopes to keep on all of Tenfore's 50 staff, who will continue to work out of offices in London and Frankfurt.
Tenfore collects data on global equities, commodities, derivatives, indexes, and foreign currencies from more than 160 sources and consolidates it for real-time distribution to clients.
The firm also offers front-end software terminals that use its market data, along with analytics and third-party application plug-ins.
The company has more than 500 clients worldwide, including brokerages, banks, trading firms, buy-side institutions, financial information and technology providers, corporations, and retail investors.
Morningstar says the deal broadens the scope, depth, and timeliness of its investment data, enabling it to offer real-time stock quotes from nearly all the world's major stock exchanges.
The firm estimates that the global real-time data market it enters with the acquisition is worth approximately $1 billion.
Commenting on the deal, Joe Mansueto, chairman and CEO, Morningstar, says: "It provides an entry into a new area for us: offering global real-time stock quotes to our clients. There is a large market for this data, and we can now bundle real-time quotes with Morningstar's fundamental equity data and research to deliver greater value to our clients."
Marlin & Associates New York acted as strategic and financial advisor to Tenfore's investors.